Pakistan's Auto sector rebounds with 43% growth in FY25

In FY25, total automobile sales reached 148,000 units, marking a significant 43% increase compared to the previous year. This growth was largely driven by improved auto financing conditions, which resulted from lower interest rates, declining inflation, and the introduction of new models that boosted consumer demand.
In June 2025, automobile sales surged to a three-year high of 21,800 units, achieving an impressive 47% month-over-month (MoM) and 64% year-over-year (YoY) growth. The overall MoM increase in auto sales for June was mainly propelled by a remarkable 148% rise in sales for Pak Suzuki Motor Company (PSMC). This surge was attributed to pre-buying activities ahead of the proposed Goods and Services Tax (GST) hike on 850cc vehicles, which would increase from 12.5% to 18%. However, excluding PSMC, the industry experienced a 7% decline in sales compared to the previous month, primarily due to expectations of a duty reduction on imported Completely Built Units (CBU), which led consumers to delay their purchases.
Indus Motor Company Ltd (INDU) reported a 24% MoM decrease in sales for June, with total units sold falling to 3,687. This drop was largely due to a 24% decline in sales of the Corolla and Yaris models, which totaled 2,902 units. Additionally, combined sales of the Fortuner and Hilux models fell by 23% MoM, amounting to 785 units.
Honda Atlas Cars (HCAR) experienced a 10% MoM decline in sales for June, with total volumes reaching 1,808 units. This decrease was primarily driven by a 9% drop in Civic and City sales, which totaled 1,710 units. Meanwhile, sales of the HR-V and BR-V models fell significantly by 27% MoM.
In contrast, PSMC noted a substantial 139% MoM increase in sales for June, with volumes reaching 13,217 units. The sharp recovery was led by the Alto, Cultus, and Swift models, which reported MoM sales growth of 179%, 108%, and 125%, respectively. Additionally, the Ravi and Suzuki Every models saw MoM increases of 50% and 49%. However, the Wagon R was the only model to experience a decline, with sales decreasing by 32% MoM.
Sazgar Engineering Works Ltd (SAZEW) reported a 47% MoM increase in sales for June, aided by a concurrent 47% rise in Haval volumes, which reached 1,349 units.
In the two-wheeler segment, sales volumes declined by 10% MoM in June, reflecting subdued demand. ATLH reported total sales of 115,286 units, representing an 11% MoM decrease.
In contrast, tractor sales saw a significant rise of 78% MoM in June, reaching 2,791 units. This growth was primarily driven by MTL, which reported a remarkable 136% MoM sales increase to 2,249 units, while AGTL experienced a 12% MoM decline, with sales falling to 542 units.

Courtesy- AHL Research